Answer:
American bakeries will win
Explanation:
In the given case the American bakeries will win.
It is given in the question that the contract between the American Bakeries and the Empire is a requirement contract.
The requirement contract not necessarily means that the two parties will have the trade.
Therefore,
The American Bakeries does not require any purchase from the Empire
Answer: -12.1%
Explanation:
Bond Sam was priced at Par which means it could have been priced at $1,000 and its yield was the same as the coupon rate of 8%.
If interest rates rise by 5%, the yield becomes:
= 8% + 5%
= 13%
Price of bond is attached:
Yield = 13% /2 = 6.5% per semiannual period
Coupon = 8% * 1,000 * 0.5 = $40 per semi annual period
Period till maturity = 3 * 2 = 6 semiannual periods
Price = $878.97
Percentage change in price:
= (878.97 - 1,000) / 1,000 * 100%
= -12.1%
Explanation:
When two conditions are met, a potential loss is accrued: an benefit is either disproportionate or debt is sustained on a balance sheet date and the magnitude of a loss is reasonably estimatable.
When the calculation is below a given range and there appears to be no better estimation than any other beyond that range, the minimum limit will be applied.
Therefore, it is appropriate to include as liabilities the total sums ($250,000) of the probable promised payout. Once the device is purchased, the retrofitting expenses should be paid, as they greatly boost future computer operation.
Answer:
C) credit to Note Payable of $1,000,000
Explanation:
The complete journal records for November 1, 2018 are:
- Dr Cash account 100,000
- Cr Notes Payable account 100,000
The company received $100,000 in cash. Since cash is an asset and it increased when the bonds were issued, it should be debited.
The company has to pay a note worth $100,000. Since notes payable is a liability and it increased when the bonds were issued, it should be credited.
